"assets that have suffered from unanticipated or premature write-downs, devaluations or conversion to liabilities"' or
"assets that have lost use and value", or
"investments that are not able to meet a viable economic return and which are likely to see their economic life curtailed due to a combination or factors"...
and there are other definitions of stranded assets.
Originally, "Stranded assets" was a phrase to explain that certain fuels were better left in the ground, since the expense of bringing them to the surface outweighed the value of the asset. (A very simplified explanation.) Hence, those assets were "stranded" in the ground. However, assets that become liabilities are not unique to the oil, fossil fuel industry.
Since the covid epidemic, the concept of an asset being "stranded" has been expanded. Assets such as restaurant seats; theater seats; hotel beds; airline seats; cruise ships; public transportation capacity; sports venues and seats; theme park admissions; elective surgical units...these might be broadly defined as 'stranded."
The asset; for example, an empty cruise ship, still requires maintenance, financing and insurance, however the asset has lost its earning power.
The above are just some examples of temporarily stranded assets. They are now devalued; not being used to capacity and have been converted in some cases to liabilities.
On a personal level you might consider some of the following assets as temporarily stranded...rental property that cannot be rented due to covid regulations and restrictions; hotel points that cannot be used; the automobile that you rarely use now, but still requires insurance and is depreciating; travel reward miles that you don't use due to travel restrictions - all personal "assets" that were 'devalued', since they are not being used.
Recognizing a personal stranded asset and considering it as a present liability is a useful financial exercise.
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